Nexstar Acquires Tegna in $6.2 Billion Deal to Expand Broadcasting Reach

Nexstar Media Group has announced its agreement to acquire Tegna Inc. in an all-cash transaction valued at $6.2 billion. Under the terms of the deal, Nexstar will pay $22 per share for all of Tegna's outstanding stock, representing a 31% premium over Tegna's 30-day average stock price ending August 8, 2025. (tvnewscheck.com)

The acquisition will combine Nexstar's over 200 stations across 116 markets with Tegna's 64 stations in 51 markets, resulting in a broadcasting entity operating 265 full-power television stations in 44 states and the District of Columbia. The merged company will cover 132 of the country's 210 television Designated Market Areas (DMAs), including nine of the top ten DMAs, reaching approximately 80% of U.S. television households. (tvnewscheck.com)

Perry A. Sook, Nexstar's Chairman and CEO, highlighted the strategic benefits of the acquisition, stating, "The initiatives being pursued by the Trump administration offer local broadcasters the opportunity to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies that have unchecked reach and vast financial resources." (tvnewscheck.com)

Howard Elias, Chairman of Tegna's Board of Directors, emphasized the alignment between the two companies, noting, "This transaction... reflects the fact that policymakers of all perspectives are calling for regulations governing our industry to be modernized." (tvnewscheck.com)

The deal is expected to close in the second half of 2026, pending shareholder and regulatory approvals. Nexstar anticipates annual net synergies of approximately $300 million through revenue enhancements and cost reductions. (tvnewscheck.com)

This acquisition reflects a broader trend of consolidation in the broadcasting industry, influenced by regulatory changes under the Trump administration aimed at relaxing media ownership rules. The Federal Communications Commission (FCC) has been repealing outdated broadcast rules, facilitating such mergers. (washingtonpost.com)

Following the announcement, Nexstar's stock price declined by 0.89%, closing at $204.55, while Tegna's stock price rose by 4.19%, closing at $21.025.

Analysts suggest that consolidation alone may not resolve the broader advertising challenges facing TV station groups. The shift of advertising dollars from traditional TV to digital platforms continues to impact the industry. (tvtechnology.com)

This isn't the first acquisition attempt involving Tegna; a previous $8.6 billion deal with Standard General fell through in 2022 due to regulatory issues. (reuters.com)

The broadcasting industry is experiencing significant consolidation as companies seek to address challenges such as cord-cutting and the rise of streaming services. For instance, Sinclair Broadcast Group is conducting a strategic review of its broadcast division, which includes 178 local television stations across 81 markets. (axios.com)

As the media landscape continues to evolve, the combined entity of Nexstar and Tegna aims to strengthen its position against increasing competition from Big Tech and national media platforms, ensuring the long-term vitality of local news and programming.